Senator Bernie Sanders recently questioned Novo Nordisk CEO Lars Fruergaard Jørgensen on the high prices of the company’s drugs Ozempic and Wegovy. Jørgensen blamed pharmacy benefit managers (PBMs) for the high prices, stating that lowering the list price could result in the drugs being removed from formularies. Sanders, however, revealed commitments from major PBMs to keep the drugs on their formularies if Novo Nordisk lowered the list price. Jørgensen eventually agreed to work with the committee and PBMs to lower the prices if it benefits patients.
Sanders has been critical of the high drug prices in the U.S., citing significantly lower prices for the same drugs in other countries. Jørgensen defended the pricing structure, citing the costs of diabetes and obesity-related illnesses in the U.S. A Department of Health and Human Services report found that drug prices in the U.S. are nearly three times as high as in other wealthy countries.
The discussion also highlighted the role of PBMs, with Senator Tim Kaine criticizing them for not contributing to research or drug development. The Federal Trade Commission sued major PBMs for inflating the price of insulin. Jørgensen explained that higher list prices are necessary to negotiate rebates with PBMs.
Overall, the hearing revealed tensions between drug manufacturers, PBMs, and lawmakers over the high cost of prescription drugs in the U.S., highlighting the challenges and complexities of the pharmaceutical pricing system.
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